Things you could do thanks to your ULIP Savings

Has your ULIP investment left you with an envious corpus? Find out how you could use it.

A unit-linked insurance plan (ULIP) is a common investment option today. On the one hand, you get life insurance. On the other hand, you get to invest a part of your money in stocks and bonds. And you can invest according to your risk appetite. More often than not, they yield better returns than ordinary savings accounts. If you have a cash corpus sitting idle, here are some things you could do with it:

Pay off a debt in part or full:

Do you have a home loan or a personal loan to service? Then use the ULIP corpus to foreclose the loan. If you have opted for a fixed rate, this would help you save more. Over the years, you would end up paying a lot of interest. But, do check whether your lender will impose a prepayment penalty. See how this will affect your credit rating.

Increase your health insurance coverage:

Think ahead and estimate how much healthcare costs will rise when you are older. Get coverage for critical illnesses too. Health insurance is more expensive once you are a senior citizen. So, invest in a better health plan for your parents. A top-up plan or a super top-up plan may be a good place to start. You may want to increase your sum assured as well.

Invest in real estate:

Use the money as a down payment to buy an asset or invest in real estate. That way, you are less likely to liquidate tangible assets unless essential. Also, assets like gold or real estate increase in value over the years. So, you will get a bigger corpus when you liquidate.

Upgrade to a better car:

With old cars, over the years you pay more for maintenance and keeping it roadworthy. Also, with age, your needs change. Instead of a small car, you may need a sports utility vehicle that fits your kids, spouse, pets, and in-laws in comfort. Trade off your old car, add a bit on your own, and you are ready to get a better model. If you have enough of a corpus, you might not even need to take a car loan. It all depends on how much you are willing to spend.

Renovate your home:

Use the corpus for home renovations and repair. Timely maintenance and renovations are necessary if you live in a house. A facelift in the form of a fresh coat of paint or modern and upgraded fittings improve the value of a home.

Invest in a pension scheme:

Many people tend to underestimate their post-retirement needs. In fact, as health fails and inflation rises, people need more money. An extra income will keep stress at bay in this phase of your life.

Invest in ULIPs again:

Take risks. Invest a part of your ULIP savings in high-risk investments. They have a better yield potential. You may get high returns if things click. Even if you do not, this is money you can afford to play around with.

Upgrade your skills:

Get that MBA degree you have been putting off. Go for the technical training you have been eyeing. Get to the next level in your field of work. Education is an investment. It never fails to bring high returns.

Travel:

Check off those destinations in your bucket-list and have fun. Use your ULIP savings to see the world, and simply quench your thirst for the unknown.

An unexpected cash kitty is a wonderful thing. Splurge and spend. Invest in yourself. But resist the temptation to blow it all up. The future is uncertain. Make sure you create a safety net for yourself. Not everybody gets a chance or the resources to do that. So, here’s to responsible spending.

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Additional Disclaimers

THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER. THE LINKED INSURANCE PRODUCTS DO NOT OFFER ANY LIQUIDITY DURING THE FIRST FIVE YEARS OF THE CONTRACT. THE POLICYHOLDER WILL NOT BE ABLE TO SURRENDER/WITHDRAW THE MONIES INVESTED IN LINKED INSURANCE PRODUCTS COMPLETELY OR PARTIALLY TILL THE END OF THE FIFTH YEAR.

For more details on risk factors, terms & conditions please read sales brochures and benefits illustrations carefully before concluding a sale. Products and as such, are subject to risk factors • The premium paid in unit linked life insurance policies are subject to investment risks associated with capital markets and the NAV’s of the units may go up or down based on the performance of fund and factors influencing the capital market and the policy holder is responsible for his/ her decisions • Aegon Life Insurance is only the name of the Insurance Company. Aegon Life iMaximize Insurance Plan and Aegon Life iInvest Insurance Plan is only the name of the unit linked life insurance contract. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns. The non-guaranteed projected investment returns of 4% and 8% are not guaranteed. Please know the associated risks and the applicable charges, from your insurance Agent or the Intermediary or policy document of the insurer .If death occurs due to suicide within 12 months from the date of commencement of risk or of the Policy, the death benefit is refund of at least 80% of the premium(s) paid provided the Policy is in-force. If death occurs due to suicide within 12 months from the date of revival of the Policy, the death benefit is higher of 80% of the premiums paid till the date of death or the Surrender Value available as on the date of death. If death occurs due to suicide within 12 months from the date of exercising life stage option (resulting in the increase in death benefit), the death benefit is the aggregate of the following: Original Total Sum Assured, plus any increased Sum Assured purchased by exercising the life stage option prior to 12 months from the date of death (due to suicide); plus 80% of the premiums paid for the last increase in Sum Assured. The premiums paid and benefits received are eligible for tax benefits under section 80C and 10 (10D) of the Income Tax Act of 1961, respectively on fulfilment of conditions laid down for availing such benefits. Please consult your tax advisor for details. Goods & Services Tax announced by Government or statutory body in future would be levied as per the applicable laws.